Markup and Profit Margin Calculator
Enter your cost and a percentage to get the selling price. Switch between markup (on cost) and profit margin (on selling price).
Enter your cost and a percentage to get the selling price. Switch between markup (on cost) and profit margin (on selling price).
Every formula used by these calculators. They match the FNSACC323 Perform financial calculations unit.
Markup calculates profit as a percentage of the cost price. Profit Margin calculates profit as a percentage of the selling price.
Fixed Costs stay the same no matter how much you sell (e.g. rent, insurance). Variable Cost is what it costs to make or deliver one single unit (materials, packaging, per-item shipping) — it goes up and down with sales, unlike fixed costs. Selling Price is what you charge per unit.
Both describe the same profit, measured against different things. Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price.
Example. An item costs $50.
At a 20% markup the price is $50 + $10 = $60.
At a 20% margin the price is $50 ÷ 0.80 = $62.50, because the $12.50 profit has to be 20% of the selling price.
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 200% | 66.7% |
Mixing the two up is an easy way to underprice. If you need a 40% margin and apply a 40% markup instead, you end up with a margin of only 28.6%. There’s a longer walk-through in Markup vs margin: the difference, with examples.
Markup is profit divided by cost. Margin is profit divided by selling price. The same sale always has a higher markup percentage than margin percentage.
A 100% markup. Doubling the cost means half the selling price is profit.
No. A margin of 100% would mean the item cost nothing. Markup has no upper limit.